Professional Documents
Culture Documents
From Science To Operations-Intro PDF
From Science To Operations-Intro PDF
to Operations
Questions, Choices and Strategies
for Success in Biopharma
From Science
to Operations
Questions, Choices and Strategies
for Success in Biopharma
2014
Editors
Ralf Otto
Alberto Santagostino
Ulf Schrader
Contents
9
131 The biopharmaceutical facility of the future: Putting three paradigmshifting technologies to work
Nate Beyor, Ted Fuhr, Paul Rutten, Alberto Santagostino
147 Biopharma supply chains: Facing the challenges
Konrad W. Bauer, Peter De Boeck, Thomas Ebel
Excellence in execution
161 Time for action: Benchmarking unveils impressive
performance variance
Kasper Jahn, David Keeling, Ralf Otto, Alberto Santagostino
175 Beyond cost-cutting: The many other benefits of lean
Dannielle Appelhans, Ralf Otto, Lorenzo Positano, Rainer Ulrich
187 Breaking the paradigm: A structured methodology for
biomanufacturing yield improvement
Eric Auschitzky, David Keeling, Ralf Otto, Alberto Santagostino
193 Becoming a launch powerhouse: Understanding the drivers of
launch excellence
Hemant Ahlawat, Giulia Chierchia, Paul van Arkel
202 Launch excellence: Everything depends on flawless operations
Ralf Otto, Adam Sabow, Marco Ziegler
209 Putting quality first: Setting priorities in a holistic site transformation
Ted Fuhr, Ralf Otto, Paul Rutten, Vanya Telpis
Conclusion
219 Quo vadis biopharma: Imagine tomorrow
Ralf Otto, Alberto Santagostino, Ulf Schrader
As this book shows very clearly, the technical and business complexity of
biopharma is increasing all the time. As a result, the interconnectedness
between different players in the life sciences ecosystem is becoming ever more
important to efficient and successful drug development and commercialization.
To provide tools, expertise, and improved patient access, disease foundations
and patient advocacy groups should be strategically partnering with both academia and industry across all stages of drug discovery, launch, and manufacture.
The FDA has piloted several new programs to work more closely with patients
and drug developers, manufacturers and payors are being consulted earlier in the
development process to address patient access and reimbursement.
Many biopharmas have established strategic relationships both at academic
centers and with start-ups through corporate ventures. As complexity in the
science and business of drug discovery, launch, and manufacturing operations
continues to rise, these kinds of relationship will play a critical role: accelerating
the speed and increasing the probability of successfully bringing new treatment
to patients.
Gail Maderis
CEO of BayBio (a nonprofit company that supports the life science community)
Over the past 30 years cell-culture technology has moved into the
mainstream of the biopharma world. Now an established science,
cell-culture-derived medicines have treated more than 40 million patients, often
with novel products that could not have been delivered in any other way. The
technology has proved to be both safe and versatile, and it continues to yield
new approaches to unmet medical needs.
Significant operational challenges await, however. The industry must learn to
manage the development, launch, and ongoing production of larger and ever
more complex product portfolios. Access to talent threatens to become a
significant bottleneck. Growing global demand is stretching production and
distribution footprints. And both established and emerging markets are becoming
increasingly sensitive to the cost of healthcare provision. This book provides a
comprehensive overview of the choices, challenges, and strategic opportunities
facing the biopharma industry today. Critically, it encompasses both the next
steps in the evolution of established technologies, like mAbs, and the emergence
of new ones, like cell and gene therapies. That matters, because even as they
tackle todays challenges, biopharma executives must always be looking
ahead to tomorrows opportunities.
10
Technical challenges
These new products have created their own operational and technological
challenges. Reproducing large molecules reliably at an industrial scale requires
manufacturing capabilities of a previously unknown sophistication. A molecule of
aspirin (chemical) consists of 21 atoms. A biopharmaceutical molecule (protein)
might contain anything from 2,000 (interferons) to 25,000 (mAbs) atoms. The
machines that produce recombinant therapeutics are genetically modified living
cells that must be frozen for storage, thawed without damage, and made to
thrive in the unusual environment of a reaction vessel. The molecules must then
be separated from the cells that made them and the media in which they were
produced, all without destroying their complex, fragile structures (Exhibit 1).
All this sophistication comes at great cost. Large-scale biotech manufacturing
facilities are expensive: $200 million to $500 million or more (compared with a
similar-scale small-molecule facility that might cost just $30 million to $100 million), and they are time-consuming to build (four to five years). These facilities are
costly to run too, with long process durations, low yields, expensive raw materials, and, not least, the need for a team of highly skilled experts to operate them.
The rapid growth and increasing importance of the industry are producing a new
set of challenges and opportunities. To keep pace, biopharma players will have
to revisit and fundamentally reassess many of the strategies, technologies, and
operational approaches they currently use.
11
Exhibit 1
Copying biopharmaceuticals is not a simple task
Aspirin
(21 atoms)
Somatropine
(about 3,000 atoms)
Herceptin
(about 25,000 atoms)
Bike
(about 20
pounds)
Car
(about 3,000
pounds)
Size of 3
well-known
pharmaceuticals
Comparable
objects
Relative cost of
development and complexity
Note: The molecules are to scale; the objects are not
12
Exhibit 2
Many large pharmaceutical companies are shifting their
presence to biopharma
Change in percentage of revenues from biopharma 2000-2012, ppt
52
53
53
29
23
17
3
AstraZeneca
Eli Lilly
Bayer- Johnson
Pharma
&
Johnson
10
GlaxoSmithKline
Novartis
Merck
BristolMyers
Squibb
Pfizer
Abbott
Roche
SanofiAventis
13
21
23
29
52
79
53
28
23
34
17
sell. Logically, major pharmaceutical companies across the world are increasingly
shifting their R&D and sourcing focus to large-molecule products (Exhibit 2).
Investing in biotech R&D has yielded better returns than the pharma industry
average. The current biologics development pipeline supports an outlook of continued healthy growth. The number of biotech patents applied for every year has
been growing at 25 percent annually since 1995. There are currently more than
1,500 biomolecules undergoing clinical trials, and the success rate for biologics
has so far been over twice that of small-molecule products, with 11.5 percent of
biopharma products that pass the Phase I trial stage going on to launch.
The success of the clinical pipeline will lead to an unprecedented number of new
molecule launches, rising from a handful a few years ago to 10 to 15 per year as
biopharma products make up an increasing share of new FDA approvals in the
future. A further steep increase is to be expected as multiple players begin to
receive approval for the production of biosimilars after 2015.
If anything, the emerging picture of the longer term is even more exciting, with
disruptive innovations like immunotherapies, antibody drug conjugates, and gene
and cell therapies all making progress toward commercial launch in the next few
years. Biopharma looks poised to transform the industry once more, as increasing understanding of the interaction between drugs and the genetic makeup
of patients helps to improve the targeting of therapies. Combined with robust,
low-cost genetic profiling, this knowledge will improve treatment outcomes and
serve to accelerate and improve the outcomes of clinical trials, helping to reduce
the cost of drug development.
13
14
done in conventional pharma. Pressure from biosimilars will force the innovators
to accelerate the search for better products, and will increase pressure on the
industry as a whole to reduce its COGS.
Complexity will become a significant hurdle
As the number of products rises and new process technologies, such as continuous manufacturing, are introduced, the complexity of biopharma operations
and the biopharma supply chain will increase. Evidence indicates that current
production programs are already stretching the industry, with several players
failing to deliver to the market. This challenge will only increase as sites move
from the current one line, one product setup toward nimble and flexible multiple
product operations and are required to manage both current and future technologies under one roof.
Supply chain complexity has to be brought under control
The high premium on biopharmaceutical products and the relatively smaller share
of revenues they have historically accounted for in big pharmaceutical companies
have led to industrywide challenges in the supply chain. Complexity, cost, and
service levels are currently far from small-molecule best practices, even considering the additional complexity of cold-chain requirements.
Many more manufacturing technology platforms will come online
The new classes of molecules discussed above, from drug conjugates to
the cell and gene therapies arriving in the next five years, will each require its
own novel manufacturing, supply, and quality assurance approaches. Today,
many companies that are insourcing these products in the late clinical or early
commercialization phase are struggling to set up the novel technologies and
processes required to produce them. Making the right decision about how to set
up operations for an autologous cell therapy is a nonobvious exercise, and there
will naturally be many suboptimal solutions before sufficient experience is built.
Quality compliance will increasingly keep the industry on its toes
Quality functions are struggling to keep up with the rising demands of regulators,
with the US Food and Drug Administration at head of the list. The industry has
received an unprecedented number of warning letters and remediation programs
in the last five years, and the scrutiny is unlikely to decrease. Furthermore, the
increasing relevance of global markets (beyond the United States, European
Union, and Japan) is adding the complexity of multiple quality standards and
regulatory regimes. Compliance, robustness of processes, and efficiency will
need to be squared in one equation.
15
16
acceptance; in particular, a presence in emerging markets and the associated cost, regulatory, and market-access implications need to be considered
with great care
Improving efficiency in the supply chain, to manage inventory, distribution
logic, and the complexities of the cold chain
Streamlining the introduction of new products and new technology platforms, to support the ambition of pushing a far greater number of molecules
through technical development and manufacturing launch
Deployment of a high-performing organization with access to talent capable
of handling these challenges, and the new ones that will inevitably emerge in
such a rapidly evolving environment
*
The prize for organizations that do master these operational challenges will be
far more significant than just short-term competitive advantage. Many of the
next major opportunities for biotech will require companies to develop new and
different technologies and operating models. Todays actions will shape companies readiness to grasp these opportunities as they come to fruition.
At one end of the scale, for example, the industry must develop the capabilities
to quickly and reliably produce the small batches of fully personalized medicines
required to deliver cell therapies. At the other, it needs the high-volume, lowcost manufacturing capabilities necessary to deliver inexpensive insulin and
vaccines against diseases like malaria that take so many lives today in low- and
middle-income countries. Between these two extremes, companies will need
to accelerate the development and commercialization of new molecules to
allow a broader range of illnesses to be addressed, and they must reduce
manufacturing costs, improve quality, and build capacity to broaden access to its
life-changing products.
Only through a combination of strong science and deep operational excellence
will the biopharma industry be able to fulfill its real potential to transform the
health expectations of millions of people across the globe, successfully navigating
both the beauty and the beast inherent in the sector.
17
18
19
From science to
operations: Questions,
choices, and strategies for
success in biopharma
Martin Lsch, Ralf Otto, Alberto Santagostino, Ulf Schrader
20
the performance gap with todays leaders, and tomorrows leaders will learn to
achieve the same sustainable, year-on-year performance improvements that have
transformed other industries.
Each of these themes is explored in greater detail through the rest of this book. In
The challenges of biomanufacturing operations, we look at the fundamental and
growing differences between biopharmaceuticals and chemical pharmaceuticals,
beyond therapeutic proteins to the next generation of technology platforms, and
at the implications of the emerging biosimilars market.
In Strategic choices for biopharma players, we examine the importance of
structural design to the performance of biopharma operations and the structural
choices that companies face as they seek to maximize effectiveness. We explore
the evolution of the biopharmaceutical value chain, including the development of
manufacturing networks and the rising importance of effective technical-development and product-launch processes. We assess the new biomanufacturing
process technologies coming into play and their implications for the facilities of
the future. We also explore the increasingly significant role of contract manufacturing organizations and the changing nature of the supply chain, particularly in
the context of the emerging Asian biomanufacturing powerhouses.
Finally, in Excellence in execution, we look at current and future performance
expectations for biopharma players: the need to improve the transparency of
current performance with industry benchmarks and the pressure to transform
quality, productivity, and flexibility. We then discuss the approaches that will
enable such a change, from the sustainable transformation of operational
performance using lean methodologies, to how a structured approach can reveal
the underlying causes of process yield variability to deliver a radical step change
in technical performance.
We hope the content we have gathered here will serve as inspiration to leaders
across the biopharma sector. This industry has proved that it is not scared of
the most formidable scientific problems. Now, it is time to find novel solutions for
some of the worlds toughest operational challenges too.
21